EUR/USD Weekly Technical Report 19-23/11/2012

The EUR/USD pair has consolidated below the previous broken neckline of our detected double top pattern for the most of the previous week as seen on the provided daily chart. SMA 20 should add additional strength for the aforesaid resistance to keep the classical pattern valid as well. Having said so, we still see chances for witnessing potential downside movements during this week mainly targeting 1.2590 boundaries; noting that a sustained breakout above 1.2890 areas will shift the bias to neutral.

The trading range for this week is among key support at 1.2500 and key resistance at 1.3000.

The general trend over short term basis is to the  downside  targeting  1.1865  as far as areas of  1.3550  remain intact.

Support 1.2700 1.2630 1.2590 1.2530 1.2500

Resistance 1.2810 1.2860 1.2915 1.2955 1.3000

Recommendation Based on the charts and explanations above our opinion is, selling the pair around 1.2765 targeting 1.2590 and stop loss above 1.2890 might be appropriate this week.